Based on the information which is giving her will calculated in this way:

Accounting Profit

Economic Profit

Revenue;$430,000

Revenue;$430,000

COGS;$ 206,000 -

COGS;$ 206,000 -

Gross Profit;$ 224,000

Gross Profit;$ 224,000

Expense;$ 120,000-4*30,000

Expense;$ 120,000-4*30,000

Operating Income;$140,000

Operating Income; $ 140,000

Expected profit;$24,000 if she rent the store

Economic Profit;$80,000- = 0

Economic profit = Accounting Profit- Opportunity Cost

= $104,000 - ($80,000+24000)

= $0

The opportunity cost ofworkingin her business is more high than working as teacher or interior decorator.

If she works as teacher or interior decorator, her income will be less than what she got from working as businesswoman.The advantages of owning her business compared to have a job, Control to make decisions becomes yours. As the leader, she must direct and manage all her business activities. Also, Creative and Freedom to express her talent and ideas completely freely without the restrictions imposed by the established policies and the need to cross multiple channels. In additional, Profits: The more successful your project, the more money you can earn. While employee salaries generally depend on budget approvals and cost-of-living increases, your salary and income are directly related to your performance.

Being the leader is not completely flawless. Among the frequently repeated faults are the following:

Investment risk: If the business breaks down, she can lose her investment completely. In addition to this, your personal assets may also be at risk. Also, working for long hours, business management is rarely limited to working for eight hours from nine in the morning until five in the afternoon, especially in the beginning. Be prepared to work for 12 hours on many days for the project to succeed. Fluctuated Income, instead of receiving a salary regularly, she will depend on income that is subject to business income fluctuations. Responsibility, the freedom to make decisions is accompanied by the burden of assuming responsibility. If anything goes wrong, you are primarily responsible for it. Pressure, there is always pressure associated with trying to satisfy clients, pay employee salaries, and fulfill creditors 'demands.

Based on the calculation, she earned more from running her business than getting a job such as teacher or interior decorator. My recommendation to her is to stay working in her business, since she the ability to develop her business.

GIVE A ONE PARAGRAPH REFLECTION ON THIS ABOVE MENTIONED DISCUSSION .